Singapore To Review Ride-Hailing Regulations, Grab And GoTo On The Radar

Singapore could subject ride-hailing companies like Grab Holdings Ltd GRAB to new rules after it hinted at a crackdown on the regulations and structure governing the fast-growing industry.

The Land Transport Authority looks to revise the framework for the taxi and ride-hailing industries, focusing on the availability of supply, resilience, and the inclusivity of services while overseeing the adoption of clean-energy vehicles.

Also Read: GRAB's Swift Path to Profitability and Market Consolidation - Impressed Analysts Raise Price Target By 50%

The local agency said that the number of daily rides in Singapore increased to 613,000 in July 2023 from 517,000 in November 2020. Authorities plan to complete their review by the end of 2024's second quarter.

Grab and GoTo, which both went public in recent years, are struggling to break even as intense competition across Asia weighs on their prices, Bloomberg reports. The companies also face challenges of offering more benefits for riders and other employees as governments worldwide strive for fair treatment of gig economy workers.

Also this year, New York City's Department of Consumer and Worker Protection drafted a new law that sets minimum wages for food-delivery workers. The city had also capped the commissions the food-delivery apps could charge restaurants in 2021.

Price Action: GRAB shares traded higher by 1.84% at $3.60 premarket on the last check Thursday.

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